Half of Twitter’s Spending Has Been Wasted $TWTR $TSLA

Half of Twitter’s spending has been wasted or ineffective. It will be super easy for Elon Musk (or anyone competent) to make Twitter far more profitable.

Twitter has been spending 25% of its revenue on Research and Development and 23% on marketing. However, the number of Twitter users has been flat since 2014.

Elon Musk will be able to create research projects and marketing efforts and strategies that will actually grow users and the daily active users. Elon has been able to grow SpaceX and Tesla without advertising.

Easy fixer upper for Elon. 2X users to match Reddit or Snapchat. 4X users to Linkedin. 6X users to get to Tik Tok, 12-15X users to get to Facebook and Youtube.

Part of Elon’s Twitter plan is to add fun back.

Twitter had 7500 employees as of December 31, 2021 and 1500 of those employees work on moderation of tweets. It seems likely that Elon Musk will drastically reduce any content moderation except for violent tweets and those kinds of illegal tweets. Elon will focus on using AI to reduce bots and incorporate the authentication of users.

In terms of features, Elon Musk can add better instant messaging. Traditional instant messaging apps have proven difficult to monetize. WeChat has developed several revenue streams by becoming an essential part of daily life. WeChat average revenue per user (ARPU) is $7, or seven times that of similar service WhatsApp. A monetized instant messaging at the level of WeChat would be worth $1.5 billion to the active daily users of Twitter and $2.8 billion for the total current users.

Elon helped created Paypal and is involved in Dogecoin development.

Elon can add Wechat-like payments and shopping and cryptocurrency.

5X the users and 5X the revenue per user would be 25X on the enterprise value.
15X the users to become the leading social media site (beyond Facebook and Youtube) and 10X the revenue per user would be 150X the enterprise value.

Here is the 2021 annual report for Twitter.

Elon Musk could also add games and other applications.

Hawaiian Airlines just announced they will add in Starlink onto their passenger flights. Elon will be able to integrate Starlink and Twitter onto Air, train, car, bus, truck and ship travel.

Elon will be able to use Starlink to provide backend network capacity for short and long video services integrated with Twitter. Short video and short messages seem like a solid combination. Tik Tok has grown to over 1 billion users using short video. Elon has over 82 millon followers and knows how to engage users and what will be engaging.

SOURCES- Twitter and Brian Wang’s analysis
Written By Brian Wang, Nextbigfuture.com